Friday, October 21, 2016

U.S. Justice Department Complaint against Moody's

Moody's stock price at close 10/21/16

The U.S. government is eating their own, no surprise this is happening to Moody's. Standard & Poor's, and Fitch Ratings will not be off the radar for the financial collapse of 2008, it's not off the Betty Crocker cookbooks. The pools of debt that the agencies gave their highest ratings included over three trillion dollars of loans to homebuyers with bad credit and undocumented incomes from the year 2000 through 2007.  Hundreds of billions of dollars' worth of these securities were downgraded to "junk" status by 2010, the rating agencies designated theses securities at triple-A.  The U.S. government ended up buying $700 billion of this bad debt from what they called distressed institutions.  By December 2008, there were over $11 trillion structured finance securities outstanding in the US bond market debt. Not only is the Justice Department going to file complaints but attorneys general of a number of states have indicated that they expect to pursue similar claims under state law.

The reason I mention the U.S. government eating their own is because they're broke.  The pools of money that flowed into theses institutions during the crisis is all that is left on the table in real taxable income created from debt.  Can you imagine what it cost to run the U.S. government per year?  During the year 2015, the U.S. government took in $3.25 trillion from taxes and fees (like the DOJ suing) but yet the spending was $3.7 trillion, a deficit of $450 billion. 

At this point, the printed money sham connected to zero to negative rates by design going on around the world of countries that can print their own money is not enough because this money is received as debt on a balance sheet at interest.  The main reason the Fed has not raised rates because the players will not be able to afford 50 basis points (1/2 percent) on this heroin money, they are addicted.  This shows the economy has not recovered from the crash of 2008, it's only been propped up from plunge protection teams.  History shows us when the banks are failing in a monetary system because of debt, which always has been since inception, these institutions and governments take us to war.  This cancels the debt from the profits of war.

Here is some easy help.  #1, do not support these criminal institutions that have turn banking into a casino and fraud...  #2, do not support any government dragging you into war.  I always get the question, 'what can I do?'  Support true business that has you and community interest as a whole.  The consumer is two-thirds of the economy, without that support flawed banks and crony business is left sucking air.

Mark Twain — "It's easier to fool people than to convince them that they have been fooled."

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